5 myths about the importance of HR analytics

Today, many areas of business rely on strong analytics to set the course for the year and track performance of teams and individual contributors. Sales teams lean on dashboards to determine the percentage of opportunities won. Customer Success teams use analytics and performance metrics to share successes and areas of improvement with clients. Event teams track attendee participation and follow their journey through to sales.

While analytics and performance measurement are second nature to these teams, HR teams often overlook the importance of HR analytics because of common misconceptions about their daily impact on the business. Analytics may seem daunting and unhelpful to HR, but in fact, analytics can play one of the biggest roles in HR’s impact on the organization, specifically in reference to achieving team goals. It’s nearly impossible for HR to accomplish goals without practical, analytical means to track progress. These common HR analytics myths are about to be debunked for good!

Myth #1: HR analytics are confusing

On the surface, analytics can seem confusing and extremely unmanageable. But, put simply into configurable dashboards, data can paint a clear and precise picture of HR team goals, performance, and employee needs. Reviewing analytics can also unveil red flags or areas of high alert that HR teams need to address, like excess time spent on employee requests or missing documents for compliance. The job of providing employees with support is already a complicated task; lacking visibility into data makes it even more difficult for HR teams to track their efficiency and improve.

Myth #2: Companies need dedicated technical teams to create dashboards

With the right technology platform, HR teams have all the data and analytics they need at their fingertips—no tech team required! Platforms with advanced reporting and configurable dashboards allow HR teams to create and find the data they need to make appropriate decisions and track their organization’s adherence to SLAs and progress against KPIs. With tools that make it simple to configure these dashboards and track metrics throughout the fiscal year, like an HR Service Delivery platform, HR teams are empowered to leverage analytics in a way that works best for them.

Myth #3: HR teams are too busy dealing with daily problems to be strategic

It’s true that HR teams deal with daily fires and quick deadlines, but this should in no way prevent them from working strategically and efficiently. Establishing goals and metrics helps HR teams understand how their daily tasks impact the bottom line. A clear example may be that, through analytics, HR sees that a lot of their time is spent answering the same questions regarding the remote work policy, so they save time by putting more information on this topic on the knowledge portal. Simple inefficiencies may slip through the cracks and would otherwise never be detected without reporting and analytics in place. Creating goals and monitoring those goals through HR analytics can actually help teams be more strategic!

Myth #4: HR doesn’t have to do everything by the book

HR teams are held to a standard of total compliance, especially when employee documents are concerned. Being such a regulated department, analytics can help HR understand where they may be falling short. In cases of noncompliance, HR teams can act to make the proper corrections and maintain a compliant organization. For example, as documents or certifications approach expiration, HR teams can proactively work to update these in a timely and organized manner.

Myth #5: Knowing analytics data has little impact on the employee

Understanding organizational HR analytics is actually one of the best ways to impact each individual employee. Analytics provide a clear picture of what employees need, what they want, and how they are currently assisted by their HR team. Identifying bottlenecks in common employee processes or recognizing where employees often struggle can help HR teams adapt, strategize, and create systems and processes that work for the organization. As changes are made to help employees work seamlessly, HR can also track employee satisfaction to determine if their changes are making a positive impact.  

The importance of HR analytics cannot be overstated. The good news is understanding and creating HR analytics dashboards doesn’t have to be rocket science! Learn more about simple Advanced Analytics features from PeopleDoc.